Telecom Company Telephone and Data Systems Reports 3Q 2024 Results

Telephone and Data Systems, Inc. (NYSE: TDS) recently reported its financial results for the third quarter of 2024. The company’s total operating revenues stood at $1,224 million for the quarter, compared to $1,278 million for the same period in 2023. Net income attributable to TDS common shareholders was reported at $(83) million, with related diluted earnings per share at $(0.73), in contrast to $(17) million and $(0.16) in the third quarter of 2023.

A notable adjustment made to the earnings was the exclusion of a UScellular wireless spectrum license impairment (non-GAAP) of $136 million ($102 million, net of tax), impacting net income attributable to TDS common shareholders and diluted earnings per share for the quarter. This impairment focused on the retained high-band spectrum unit of accounting containing the 28 GHz, 37 GHz, and 39 GHz frequency bands.

In terms of operational highlights, for UScellular, the company reported improvements such as postpaid ARPU growth of 2% and noted a growth in fixed wireless customers by 32% to 140,000. The sale of select spectrum assets for $1 billion to Verizon and additional spectrum sales to other mobile network operators were also pointed out.

In its TDS Telecom segment, the company underlined its milestone of having 50% of service addresses now served with fiber. Operating revenues for TDS Telecom grew by 2%, with residential revenue showing a 5% growth due to increased residential broadband connections resulting from broadband investments.

Regarding estimated results for the full year 2024, UScellular’s service revenues are expected to range between $2,950 to $3,000 million, while Adjusted EBITDA is projected to be between $970 to $1,045 million. For TDS Telecom, total operating revenues are anticipated to be unchanged, with Adjusted EBITDA estimated to be in the range of $330 to $360 million.

The company also provided a detailed breakdown of UScellular’s operational data, illustrating metrics such as postpaid churn rates, postpaid handset net losses, and prepaid net additions.

TDS President and CEO, LeRoy T. Carlson, Jr., stated, “We continue to strategically optimize our portfolio to focus resources appropriately. In Q3, TDS completed the sale of its OneNeck operations and entered into agreements to sell certain ILEC and cable properties.”

TDS conducted a teleconference on November 1, 2024, discussing these results with investors and industry stakeholders. The call was made available for live access through the company’s official website. Further financial documentation can be accessed on TDS’ investor site.

END_OF_TEXT

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Telephone and Data Systems’s 8K filing here.

About Telephone and Data Systems

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.